Important members of the developing countries' alliance on agricultural trade liberalisation, including India, Brazil and South Africa, on Tuesday discussed the future strategy of the group in the wake of a possible move by the US and the European Union to commit to a roadmap for the reduction and ultimate elimination of export subsidy in the coming days.
Tuesday's deliberations, on the sidelines of the 39th session of the International Textiles and Clothing Bureau in the Capital, comes a fortnight ahead of the World Trade Organisation's meeting in Geneva to break the deadlock on agricultural negotiations. Representatives from Mexico, Indonesia and Pakistan also attended the meeting.
Brazilian Ambassador to WTO Luiz Felipe De Seixas Correa, who is also the chairman of the G 20 alliance, told Business Standard members of the multilateral trade body were working on a timeframe that involved setting the framework for agricultural negotiations by the end of July.
"For us the big two (the US and EU) have to move to create the necessary space for developing countries to move," the Brazilian ambassador said.
He added that the G 20 wanted a timetable from the EU and the US on the elimination of export subsidies and not just a shift from one box to another.
The WTO membership, which gave the mandate for starting negotiations at the Doha ministerial meeting in 2001, was to fix the modalities for negotiations last year but deadlines have been missed on several occasions because of rigid positions maintained by the major players, including the US, EU and the G 20 alliance.
Officials said the group of developing countries was also looking at various possible scenarios for tariff reduction so that the cuts did not affect them in an unfavourable manner.
While the G 20 members are pushing for a steep cut of subsidies -- export subsidy and domestic support -- before agreeing to a reduction in subsidies. On the other hand the US and EU, which buried their differences and submitted a joint proposal in August last year, are seeking enhanced market access through tariff reduction.
Any headway on agricultural negotiations will queer the pitch for progress in other areas in the round, including services and industrial tariffs.
